Business Directories

Dubai slumps to fresh 7-year closing low

Dubai, December 27, 2011

Dubai's benchmark slumped to a fresh seven-year closing low as the year-end trading lull took a toll, while Qatar's market rose for the third session in five.

Dubai's index ended 0.8 percent lower at 1,319 points, its lowest close since June 2004. A lack of catalyst in the local market and slow recovery in the property sector, the ex-leaders of the market, has pushed investors to look at regional alternatives.

"Valuations-wise, the market is attractive but the problem is that there is virtually no investor interest," Shakeel Sarwar, head of asset management at Securities & Investment Co (Sico) in Bahrain, said.

"Until big institutional investors take the lead, I don't think the market will recover in the short-term. Volumes have fallen, brokerages are shutting down, and it's a sorry tale.There seems to be no investors willing to come in and commit long-term capital."

The struggling investment bank said earlier in December it will lay-off 29 of its employees in the first phase of a planned redundancy program aimed at boosting profitability. Abu Dhabi's Aldar Properties falls 2.4 percent to a fresh record closing low.

The portion of the developer's bonds converted into 1.2 billion shares last week by Mubadala Development Co will be listed on Jan 2, Aldar said in a bourse statement. - Reuters